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in Vacaville, CA
Most Vacaville self-employed borrowers get turned down by conventional lenders. Not because they can't afford a home — because their tax returns don't show it.
Two non-QM loan types solve this: 1099 loans and bank statement loans. Knowing which fits your income structure saves you time and money.
1099 loans are built for independent contractors and freelancers. Lenders use your 1099 forms — not tax returns — to calculate qualifying income.
This matters because self-employed borrowers often write off heavy expenses. Those deductions tank taxable income on paper but don't reflect actual earnings.
Bank statement loans use 12 to 24 months of deposits to prove income. Lenders apply an expense ratio — typically 50% — to calculate net qualifying income.
This loan works best when your deposits are consistent and high. Irregular or seasonal cash flow can complicate the income calculation.
The core difference is how income gets calculated. 1099 loans use gross earnings from your forms. Bank statement loans use actual cash deposits with an expense ratio applied.
If you earn from one or two clients and get clean 1099s, that loan is simpler. If your income flows through a business account from many sources, bank statements often show more.
Freelancers and contractors with clean 1099s from one or two clients usually qualify faster with a 1099 loan. Less documentation, cleaner paper trail.
Business owners pulling income from multiple revenue streams often show more qualifying income through bank statements. As of April 2026, we're placing both loan types with Vacaville borrowers depending on which shows stronger income.
Some lenders allow a combination, but most pick one method. A broker can run your scenario both ways to find the stronger qualifying income.
Most non-QM lenders want at least 10% down. Stronger credit profiles may qualify with less, but 20% down improves your rate significantly.
Most lenders require a minimum 620 score. Better rates kick in above 700. Credit requirements vary by lender and loan size.
Yes. Non-QM loans price higher than conventional or FHA. Rates vary by borrower profile and market conditions.
Non-QM loans typically close in 21 to 30 days. Income document review adds time — have your 1099s or statements organized before applying.
It depends on your income structure. 1099 loans are simpler for contractors. Bank statement loans often show more income for established business owners.